"ECECU approached us as a viable merger partner," she said. "They felt we would be a good fit for them."

MSUFCU is set to merge with Eaton County Educational Credit Union, pending approval from regulators and membersCourtesy photo

LANSING, MI – Michigan State University Federal Credit
Union and the Eaton County Educational Credit Union are set to merge, pending
regulatory approvals and a member vote.

MSUFCU spokeswoman April Clobes confirmed the proposed
merger, and said talks between the two credit unions have been ongoing since the
middle of last year.

The merger, if successful, would mark the first time
MSUFCU acquired another credit union.

MSUFCU is the 55th largest credit union in the country, Clobes said, with more than 169,000 members and $2.2 billion in assets.

The credit union operates 10 local branches in the Lansing area, from Okemos to south Lansing.

According to the MSUFCU website, the Eaton County Educational Credit Union has about $30 million in assets; but like many smaller credit unions,
the Eaton County Educational Credit Union found it nearly impossible to earn money and grow financially without merging, a statement posted on the MSUFCU website reads.

The Eaton County Educational Credit Union has one branch,
located in Charlotte, about 20 miles southwest of Lansing.

Clobes said that credit union's chief executive officer
is retiring, and finding a qualified replacement is challenging.

"ECECU approached us as a viable merger partner," she
said. "They felt we would be a good fit for them."

MSUFCU had also been looking to expand into Eaton County
for some time, she added. According to the credit union's website, about 11,000
MSUFCU members live in Eaton County.

But before the proposal can move forward, state and
federal regulators have to approve.

MSUFCU is governed by the National Credit Union
Association, a federal regulator, while the Eaton County Educational Credit
Union is a state-chartered credit union, giving the Office of Financial and
Insurance Regulation jurisdiction as well.

A decision from both entities is expected in the next
week, Clobes said.

The merger would then be put up for a vote before the
ECECU's members; a majority of members who participate in the vote must approve
the merger for the proposal to move forward.

Provided state and federal regulators approve, the member
vote would happen in February, Clobes said.

Barring any delays, the credit unions would officially be one
entity in April, with the smaller credit union's 5,000 members effectively
being absorbed into MSUFCU.